Open the contractor you want to convert from your People list, then click "Convert to employee" in the actions at the top of their profile. The button shows only for individual contractors who aren't already employees. It won't appear for a business contractor or for someone who already has an employee record.
On the "Confirm personal information" step, review the first name, last name, email, and date of birth carried over from the contractor. Edit anything that's out of date, then click "Continue".
On the "Add residence" step, the contractor's address is filled in if they have one. Edit it if the employee's home address is different, or choose "Add residence" to enter one, then click "Continue". If an address can't be verified, apply the suggested correction when prompted.
On the "Employment details" step, pick the employee "Start date" and answer "Where does this employee work?" with "Choose an existing workplace", "Create a new workplace", or "Use their home address". "Use their home address" appears only if you added a residence on the Add residence step. A start date and a workplace are both required. Click "Continue".
On the "Compensation" step, choose "Add compensation info" to set default pay (a compensation type of Hourly, Annually, or Per piece, an amount, an optional rate name, and workweek hours), or choose "Skip" to add it later. Default pay prefills every payroll so you don't re-enter it.
On the "Assign to a pay schedule" step, keep the contractor's current schedule or pick a different one, or choose "No pay schedule". Assigning or changing a schedule blocks autopay for the affected pay period, so you'll approve that payroll manually.
On the "Review" step, check the summary. If the contractor doesn't already have a login, "Invite them to enter their own details" is checked by default. Leave it checked to email them an invitation to log in to Freedom and a setup link where they add their SSN, bank, and tax info, or clear it to skip both emails. If they already have a login, the box doesn't appear and no email goes out. Then click "Convert to employee" to finish.
Freedom then shows "Employee created and invited", or "Employee created" if no invitation went out. Open their employee record to finish any remaining setup: the Withholdings tab for tax withholdings and the Details tab for payment details. If you cleared the invite box, or they already had a login, and you want them to enter their own SSN, bank, and tax info, send a setup link: see Send a self-serve setup link. You can also invite them later from the Invite column on the People page.
Note: Converting within the same calendar year means this person gets both a 1099 (as a contractor) and a W-2 (as an employee) for that year. The contractor record isn't deleted. Its page shows "This person also has an employee record at this company." with a "View employee record" link.